DGCA Mandates Faster Refunds, Ends Credit Shells

Beginning March 26, 2026, new regulations from the Directorate General of Civil Aviation (DGCA) will ensure air passengers receive faster refunds without additional processing fees. These stringent rules aim to resolve widespread complaints regarding delayed refunds, unacceptable deductions, and the forced use of credit shells by airlines.

The DGCA has established clear timelines for refund processing and mandated that airlines cannot impose extra charges. Even for non-refundable or promotional fares, full refunds including taxes and various fees are required in cases of no-show, non-utilization, or cancellations. Transparency is enhanced with requirements for detailed refund break-ups and published policies.

Passengers will benefit from a 48-hour free cancellation or amendment window post-booking, provided the flight is not within a specified short period. Beyond this initial period, cancellation charges will apply, capped at the basic fare plus fuel surcharge. Airlines must also prominently display these charges.

Additionally, airlines are now barred from charging for spelling corrections in passenger names reported within 24 hours of booking. The new framework also addresses medical emergencies, offering refunds or credit shells under specific conditions and requiring assessment for other medical cases. The government also advises airlines against charging seat selection fees for a significant portion of seats.